1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GalinKa [24]
3 years ago
14

An asset is purchased on January 1 for $44,700. It is expected to have a useful life of five years after which it will have an e

xpected residual value of $6,000. The company uses the straight-line method. If it is sold for $32,000 exactly two years after it is purchased, the company will record a: Multiple Choice
Business
1 answer:
Black_prince [1.1K]3 years ago
5 0

Answer:

Gain of $2,780

Explanation:

Calculation to determine what The company will record If it is sold for $32,000 exactly two years after it is purchased

First step is to calculate the Annual depreciation expense using this formula

Annual depreciation expense = (Cost − Residual value) × (1 ÷ Useful life)

Let plug in the formula

Annual depreciation expense = ($44,700 − $6,000) × (1 ÷ 5)

Annual depreciation expense =$38,700× (1 ÷ 5)

Annual depreciation expense =$ 7,740

Second step is to calculate the Accumulated depreciation using this formula

Accumulated depreciation = Year 1 depreciation expense + Year 2 depreciation expense

Let plug in the formula

Accumulated depreciation = $7,740 +$7,740

Accumulated depreciation = $15,480

Now let calculate the Gain (loss) on disposal

Using this formula

Gain (loss) on disposal = Proceeds from sale − (Cost − Accumulated Depreciation at time of sale)

Let plug in the formula

Gain (loss) on disposal = $32,000 − ($44,700 − $15,480)

Gain (loss) on disposal =$32,000-$29,220

Gain (loss) on disposal=$2,780

Therefore If it is sold for $32,000 exactly two years after it is purchased, the company will record a GAIN of $2,780

You might be interested in
A firm's bonds have a maturity of 10 years with a $1,000 face value, a 9 percent semiannual coupon, are callable in 5 years at $
Sladkaya [172]

Answer:

Yield to maturity is 3.94%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 9% = $90/2  = $45 semiannually

Selling price = P = $1080

Number of payment = n = 10 years x 2 = 20

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $45 + ( 1000 - 1080 ) / 20 ] / [ (1,000 + 1080 ) / 2 ]

Yield to maturity = [ $45 - 4 ] / 1040 = $41 /1040 = 0.394 = 3.94%

4 0
3 years ago
What is advertising?​
Mashutka [201]

Answer:

It’s when you convince people to buy a product, or service. Marketing is used in this.

Explanation:

3 0
3 years ago
Is boohoo a good website? ​
koban [17]

Answer: From what I've heard ,yes!

Explanation:

6 0
3 years ago
Some individuals argue that accountants should focus on producing financial statements and leave the design and production of ma
dusya [7]

Answer:

If the accountants of an organization are to concentrate only on financial information then there will be no advantage. The both party (organization and the accountant) might suffer if this happened.

Moreover, it would be very costly to have two systems rather than one that captures and processes operational facts at the same time as it captures and reports financial facts.

The main disadvantage of this is that accountants would ignore much relevant information about the organization's activities. To the extent that such non-financial information (e.g., market share, customer satisfaction, measures of quality, etc.) is important to management, the value of the accounting function would decline.

Explanation:

3 0
3 years ago
If the terms of a contract are _____________a court__________use ___________evidence, which is evidence outside the express term
xeze [42]

Answer:If the terms of a contract are ambiguous a court may use extrinsic

Explanation:

The ambiguity of the terms of the contract will force the court to look beyond the express terms of the contract and further looks into the extrinsic terms to be able to take a position on the contract.

8 0
3 years ago
Other questions:
  • You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors an
    9·1 answer
  • You are driving a car that does not have anti-lock brakes (abs). if the road is slippery and you need to make an emergency stop,
    13·2 answers
  • The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $27,000 per year fo
    14·1 answer
  • The commercial banking system has excess reserves of $200,000. Then new loans of $800,000 are subsequently made, and the system
    15·1 answer
  • EB3.
    7·1 answer
  • The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is
    9·1 answer
  • Consider the following data for two variables, x and y.
    7·1 answer
  • After salesperson Danny O'Reilly has made a sale, he asks his customer if she knows of anyone else who might also be interested
    11·1 answer
  • Both transportation and assignment problems are members of a category of lp problems called?
    13·1 answer
  • 1 2 3 4 5 6 7 8 9 10 kaleb wants to get a payday loan in the amount of $375. he knows that the annual percentage rates (apr) for
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!